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At least two Nevada County projects are affected by a state decision to cut off bond-financed funding to close a gaping budget shortfall.
The projects include $18.6 million of money for safety improvements for the intersection at Highway 49 and LaBarr Meadows Road, as well as $1.4 million for modernization at Nevada Union High School.
An obscure body called the Pooled Money Investment Board, which oversees the pooled money investment account of funds from bond sales, voted 3-0 to freeze $3.8 billion in funds for almost 2,000 infrastructure projects throughout California, ranging from highway improvements to new schools.
As the state continues to struggle with a budget shortfall, it’s becoming more difficult for the state to sell bonds, which finance such projects. But it’s the sale of bonds that replenishes the investment account, according to Nevada County’s Transportation Commission Executive Director Dan Landon.
“This is a concrete consequence of the failure of the Legislature to deal with the budget problem,” H.D. Palmer, deputy director for the State Department of Finance in Sacramento, told The Union.
In a statement, State Treasurer Bill Lockyer, a member of the panel, called the decision “extremely regrettable.” “We had no other option to keep crucial public services operating as long as possible,” he said.
Highway funding
The $40 million project to re-align the LaBarr Meadows intersection already has received the funding for the design and to acquire property for the right-of-way, Landon said.
But construction, slated for the 2009-10 fiscal year, depends on the money frozen by the investment board, he said.
“Once we have a (balanced) state budget, the state should be able to issue bonds” and the funding would come, Landon said. “But we’ve never been in this (economic) situation in the state before,” he added. “What this means for the 49-LaBarr Meadows project is not entirely clear.”
High school bathrooms
At Nevada Union, a freeze on funds from the account could mean the J wing, for mathematics and social studies classes, and the administration wing, don’t get the handicapped-accessible bathrooms built this coming summer as planned, Karen Suenram of the Nevada Joint Union High School District said Wednesday.
And that translates to local jobs, district Superintendent Ralf Swenson added.
“We usually hire local contractors for these projects,” Swenson said.
Highway rehab
Another project that could be affected is the rehabilitation of Interstate 80 between Donner Lake and Donner Pass Road, in Truckee, District 3 Caltrans spokesman Mark Dinger said, though he added, “It’s not even clear to us.”
The rehabilitation project includes $71 million to completely rebuild the highway and bring it up to current safety standards, Dinger said.
“We still haven’t given up hope on moving the project forward,” he added. “We’re still looking for funding options, including borrowing from other projects.”
CORR project not affected
One project on the list that appears to be a mistake is nearly $1 million for Community Recovery Resources to purchase a facility for recovering drug addicts in Truckee.
“The money’s already been let go and we have it in hand,” said Warren Daniels of CORR, in Grass Valley.
Other projects
It remained unclear how the decision to stop the funding could affect other Nevada County projects on the list, including:
• The Deer Creek Tribute Trail and restoration project, with several hundred thousand dollars in question;
• A project with Environmental Alternatives for nearly $684,000;
• Gray’s Crossing affordable housing in Truckee for nearly $5.4 million;
• A project with the Salvation Army for $824,000.
Editor Jeff Pelline contributed to this report. To contact City Editor Trina Kleist, e-mail tkleist@theunion.com or call 477-4230. The Associated Press contributed to this report.
The projects include $18.6 million of money for safety improvements for the intersection at Highway 49 and LaBarr Meadows Road, as well as $1.4 million for modernization at Nevada Union High School.
An obscure body called the Pooled Money Investment Board, which oversees the pooled money investment account of funds from bond sales, voted 3-0 to freeze $3.8 billion in funds for almost 2,000 infrastructure projects throughout California, ranging from highway improvements to new schools.
As the state continues to struggle with a budget shortfall, it’s becoming more difficult for the state to sell bonds, which finance such projects. But it’s the sale of bonds that replenishes the investment account, according to Nevada County’s Transportation Commission Executive Director Dan Landon.
“This is a concrete consequence of the failure of the Legislature to deal with the budget problem,” H.D. Palmer, deputy director for the State Department of Finance in Sacramento, told The Union.
In a statement, State Treasurer Bill Lockyer, a member of the panel, called the decision “extremely regrettable.” “We had no other option to keep crucial public services operating as long as possible,” he said.
Highway funding
The $40 million project to re-align the LaBarr Meadows intersection already has received the funding for the design and to acquire property for the right-of-way, Landon said.
But construction, slated for the 2009-10 fiscal year, depends on the money frozen by the investment board, he said.
“Once we have a (balanced) state budget, the state should be able to issue bonds” and the funding would come, Landon said. “But we’ve never been in this (economic) situation in the state before,” he added. “What this means for the 49-LaBarr Meadows project is not entirely clear.”
High school bathrooms
At Nevada Union, a freeze on funds from the account could mean the J wing, for mathematics and social studies classes, and the administration wing, don’t get the handicapped-accessible bathrooms built this coming summer as planned, Karen Suenram of the Nevada Joint Union High School District said Wednesday.
And that translates to local jobs, district Superintendent Ralf Swenson added.
“We usually hire local contractors for these projects,” Swenson said.
Highway rehab
Another project that could be affected is the rehabilitation of Interstate 80 between Donner Lake and Donner Pass Road, in Truckee, District 3 Caltrans spokesman Mark Dinger said, though he added, “It’s not even clear to us.”
The rehabilitation project includes $71 million to completely rebuild the highway and bring it up to current safety standards, Dinger said.
“We still haven’t given up hope on moving the project forward,” he added. “We’re still looking for funding options, including borrowing from other projects.”
CORR project not affected
One project on the list that appears to be a mistake is nearly $1 million for Community Recovery Resources to purchase a facility for recovering drug addicts in Truckee.
“The money’s already been let go and we have it in hand,” said Warren Daniels of CORR, in Grass Valley.
Other projects
It remained unclear how the decision to stop the funding could affect other Nevada County projects on the list, including:
• The Deer Creek Tribute Trail and restoration project, with several hundred thousand dollars in question;
• A project with Environmental Alternatives for nearly $684,000;
• Gray’s Crossing affordable housing in Truckee for nearly $5.4 million;
• A project with the Salvation Army for $824,000.
Editor Jeff Pelline contributed to this report. To contact City Editor Trina Kleist, e-mail tkleist@theunion.com or call 477-4230. The Associated Press contributed to this report.
